Impact of participation in social capital networks on the technical efficiency of maize producers in Southwest Nigeria

Abstract

Maize is a staple food and one of the important sources of starch for many households. However, maize yield in Nigeria remains one of the lowest in sub-Saharan Africa. Providing agricultural credit to farmers cannot be disregarded because it has a significant impact on maize productivity. As a result of this capital investment through social capital networks is needed to improve maize productivity. This study investigated the impact of participation in social capital networks on the technical efficiency of maize producers in Southwestern Nigeria. The multistage sampling procedure was to select about 300 respondents for the study. The data were analysed using Hurdle Negative Binomial (HNB) and Endogeneity Stochastic Frontier models. According to the first hurdle result, the decision to join social capital networks is significantly influenced by age, age square, household size, gender, and access to credit. According to the second hurdle results, the level of participation in social capital networks is significantly influenced by age, age squared, household size, experience, gender, and access to credit. The Endogeneity Stochastic frontier model shows that the average technical efficiency of 65% in maize production. Maize seed, fertilizer, agrochemicals, labour, and farm size influence the technical efficiency of maize farmers. However, participation in social capital networks, as well as socioeconomic characteristics of the farmers including household size, years of education, years of experience, and extension contact, are the sources of technical inefficiencies in maize production. The study concludes that participation in social capital networks has a positive and significant effect on the technical efficiency of maize farmers. This study recommends that agricultural programmes targeted at efficient maize production should consider maize farmers participating in social groups. Therefore, more social capital networks should be established and participation of maize farmers in the social capital networks should be encouraged to access social capital and improve their production.